Datacom posts revenue growth on new strategy and investment
- 27 July, 2018 15:09
Datacom Group CEO Greg Davidson
Datacom Group says it has delivered another year of revenue growth, increasing revenue by 9.3 per cent to NZ$1.27 billion for the financial year ending March 2018.
The Group profit after tax for the year was NZ$23.5 million.
The ICT company says it now has 20 years of continuous revenue growth.
Over the past decade alone, Datacom has more than doubled its revenue, with a compound annual growth rate (CAGR) of 8.5 per cent across that period, showing the company’s durability and adaptability in a time of massive market change.
“Datacom’s strategy and new organisational structure positions us well to meet current and future client needs, as well as future growth across all markets,” says Datacom Group CEO Greg Davidson, in a statement.
“We’re confident in our ability to capitalise on strategic growth areas such as cybersecurity and customer experience, and our ability to deliver high value solutions consistently to our customers.”
Datacom delivered a revenue increase of 8.8 per cent in Australia and Asia, and 9.8 per cent in New Zealand.
The company says the growth was driven by key contracts such as the Department of Home Affairs in Australia, and Auckland Airport, NZ Lotteries Commission and Vector Energy in New Zealand.
Datacom also embarked on major projects with existing customers such as Transport for NSW, The Department of Premier and Cabinet in Queensland, and the Accident Compensation Corporation (ACC) in Wellington.
Capital expenditure increased by 53 per cent over the prior year to $55.4 million, and operating expenditure on major investments increased by 35 per cent to $19.1 million.
These investment increases support the company’s strategy to grow its capabilities and global footprint, and support the creation of new lines of business and solutions utilising Datacom’s own intellectual property.
Datacom Systems business continued to generate the largest percentage of revenue for the Group, particularly through projects based around IT managed services, third party products and licensing, and custom software development.
Datacentres, networks, and public cloud consultation and implementation projects continued to perform strongly.
The company’s own hybrid cloud solution, DCS, continued to grow, and saw significant investment into Datacom’s new Azure Stack solution.
Datacom now operates from 36 locations across Australia, New Zealand, Asia, Europe, and the USA. Employee numbers increased to 5,332, up 9.3 per cent from the year prior.
It also opened new offices in Auckland, Adelaide, Singapore and a new partnership with Australian data centre provider, AirTrunk.